© Zeus Jones 2007 Zeus Jones Mid-year business review July 10, 2008
Oct 17, 2014
© Z
eus
Jone
s 20
07
Zeus Jones
Mid-year business reviewJuly 10, 2008
© Z
eus
Jone
s 20
07
p.s. this was a joke that we played on ZJ employees before we told them we were getting
them all iPhones.
Sad that we have to say this but some people didn’t get it and started worrying about us. It’s OK we are not less profitable than ad agencies.
© Z
eus
Jone
s 20
07
Agenda
• Why we’re here
• Dive into the numbers
• Necessary changes
• Next steps
1 of 84
© Z
eus
Jone
s 20
07
Why we’re here
• Critical point in the development of our company
• Certain behaviors are limiting growth
• Need to rethink aspects of how we do what we do
• Need a companywide commitment to change
2 of 84
© Z
eus
Jone
s 20
07
Overall business looks strong
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008
© Z
eus
Jone
s 20
07
But our expenses are rising faster than our revenues.
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008
Margin Costs
© Z
eus
Jone
s 20
07
Key measures of productivity.
•ARPE: average revenue per employee
•APPE: average profit per employee
•ROHIR: return on human investment ratio
© Z
eus
Jone
s 20
07
ARPE has declined last 4 quarters.
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008
© Z
eus
Jone
s 20
07
We have a lower ARPE than most AD AGENCIES!
Zeus Jones Grey Ogilvy BBDO Fallon JWT
ARPE
Source: Adweek 2007 Agency report cards
© Z
eus
Jone
s 20
07
APPE has fallen even more sharply.
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008
© Z
eus
Jone
s 20
07
And our ROHIR is creeping into negative territory.
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008
© Z
eus
Jone
s 20
07
The problem: poorly defined processes and structures.
Too much duplication of efforts.
Too little clarity in communications and responsibilities.
© Z
eus
Jone
s 20
07
Creativity should be what we produce not how we work.
© Z
eus
Jone
s 20
07
We want to create individual solutions not work as individuals.
© Z
eus
Jone
s 20
07
How do we fix it?
• Better division of labor
• Clear lines of responsibility and communication
• New standards and processes to increase efficiency
© Z
eus
Jone
s 20
07
We’ve made some advances on the IT front, but we need to do more.
We have identified a set of tools and are implementing immediately.
© Z
eus
Jone
s 20
07
No Pain, No Gain...
We are all going to get trained on these new tools at an offsite meeting in Edina tomorrow at 8AM.
© Z
eus
Jone
s 20
07
The Offsite Location:
1575 Southdale CenterEdina, MN 55435
© Z
eus
Jone
s 20
07
We will all gain something valuable from this offsite:
© Z
eus
Jone
s 20
07
We know its tough, but...